1. SBS's bid was only 7% more than SMRT, not a compelling low ball figure. (compared to SMRT 30% lower bid for TEL)
2. they were more aggressive in this tender bcoz if they dont and more tenders fall to foreign operators then their business foundation is getting eroded and shaken. Since they are the market leader in bus segment.
3. they may be not earning much for this project, but leveraging from their scale in other bus routes, there should be a lot of ways to share the operating costs like maintenance, engineering, etc. Government only own the asset, but they don't maintain it. maintenance is still big part of expenses.
My 2-cent worth is that BCM is a double edge sword.
It reduces the asset of SBS so depreciation cost and risks is reduced.
But because BCM also allow foreign companies to bid for bus package, SBS and SMRT lose their dualpoly advantage.
I am no expert on SBS. I only know the big-picture change is that SBS has become an 'asset-light' service company. So maybe, u could analyse it as a service oriented entity.
But like i said, i never study about the details due to one of my golden rules.
my 2 cent thoughts:
1. SBS's bid was only 7% more than SMRT, not a compelling low ball figure. (compared to SMRT 30% lower bid for TEL)
2. they were more aggressive in this tender bcoz if they dont and more tenders fall to foreign operators then their business foundation is getting eroded and shaken. Since they are the market leader in bus segment.
3. they may be not earning much for this project, but leveraging from their scale in other bus routes, there should be a lot of ways to share the operating costs like maintenance, engineering, etc. Government only own the asset, but they don't maintain it. maintenance is still big part of expenses.
My 2-cent worth is that BCM is a double edge sword.
It reduces the asset of SBS so depreciation cost and risks is reduced.
But because BCM also allow foreign companies to bid for bus package, SBS and SMRT lose their dualpoly advantage.
I am no expert on SBS. I only know the big-picture change is that SBS has become an 'asset-light' service company. So maybe, u could analyse it as a service oriented entity.
But like i said, i never study about the details due to one of my golden rules.